Regenerative Agriculture Key for Food Sustainability

Regenerative agriculture holds the potential to deliver key environmental and social impacts to support food systems’ long-term sustainability, asset manager SLM Partners’ newly published whitepaper has stressed. This includes the potential to improve soil health, address climate change, enhance biodiversity and improve water quality, as well as deliver better economic returns for farmers. The release offered an update to SLM’s 2016 whitepaper on The Investment Case for Ecological Farming, which showcased conventional agriculture issues, and how ecological and regenerative farming systems could deliver important environmental and social benefits. The new whitepaper highlighted regenerative agriculture an attractive investment opportunity, suggesting it could be more profitable and had the potential to deliver superior risk-adjusted financial returns to farmers and investors. SLM also argued that regenerative agriculture could mitigate various social, environmental and economic risks by providing climate change and natural capital loss resilience. Food companies have increasingly embraced regenerative agriculture as a solution to supply chain sustainability, with firms representing more than US$1 trillion in combined annual revenues now using the term. “This new whitepaper shows how regenerative agriculture remains a compelling investment opportunity,” SLM Partners noted. “It also highlights the need to separate out the hype and greenwashing that can surround the topic, and to understand the risks and challenges when developing investment strategies.”

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